Biyernes, Nobyembre 14, 2014

What is Leverage and How it Changed My Mindset?

I know you are in a hurry so I will make it short, so please lend me a minute or two. I never understand the concept of a “lever” until I took the time to read a post about leverage.

What is it and how it works? Leverage is a ladder to success. According to Robert Kiyosaki, this is the reason why some people become wealthy. However, this is the reason too why many people fail.

Why? What is leverage then? Leverage is a tool that would help you achieve a  lot of things in a short period of time. I only have 24 hours a day, I have to sleep 5 to 6 hours, what’s left? Well, you know, it is not possible to do something that two or more persons can accomplish in a day.

If I can weave 24 baskets in a day, weaving another 24 baskets may not be possible anymore. However, some people can weave 240 baskets in a day, with little time and less effort. Leverage makes it possible. Literally, when a person could lift or move a heavy object with the use of a lever, a person too can weave 240 baskets by hiring 9 people to weave 216 baskets for him (24 baskets per person). Clearly, he only weaved 24 baskets, but produced 240 baskets at the end of the day.

That is to say, a person is leveraging other peoples’ time to accomplish his goal of weaving 240 baskets in a day.

Lastly, we should put it into consideration that being an employee, we have little to no leverage. If we don’t leverage, we are leveraged. We have two options and I realized that I have to change my mindset. Being an employee is a good thing, but thinking of being employed until my retirement age could be as bad as life in jail – no time for the family, no leverage, and time wasted for nothing but supplying my basic need.

It’s time to grow up.

Helpful resources from my Diigo Library:
I am also inviting you to read the introduction of this blog here.

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